Question about bank to bank transfers in the USA

[thurgood]

When I make a bank to bank transfer in the USA it takes the money several days to arrive at the receiving account.

In the European Union there is a law that a bank transfer must arrive within 24 hours of transfer, with many banks guaranteeing arrival of transfers the same day if the funds are sent before 2PM (or thereabouts, the banks differ). This is inter-country transfers as well as intra-country.

So what gives with the USA? Who is holding the money in the interim?

[cooliemae]

It's the receiving bank that's holding the money. I'm sure that the transfer is pretty much instantaneous, but the hold allows them to earn more money on the money.

Of course the timeline also depends on what type of account you're talking about. Money coming into checking accounts usually is available within 2 days, however savings accounts can take up to 5, depending on the bank.

[Nutria]

It's the receiving bank that's holding the money. I'm sure that the transfer is pretty much instantaneous, but the hold allows them to earn more money on the money.

The excuse is probably "we want to prevent Identity Theft."

[TexasHusker]

I do a fair amount of bank-to-bank transfers in and out of state, and everything is almost always settled within 24 hours. A wire is almost instantaneous.

[sv2007]

In the US, a wire transfer takes a few hours.

You can talk to the receiving bank to alert them that you want the money immediately and they'll tell you exactly when (usually less than a day).

BTW, this also works with large checks; banks will remove or reduce hold time if you talk to them ahead.

[Drake3287]

In the US, the funds are transferred quickly but the receiving bank will not make your money available for up to 9 business days if the deposit is over $5,000. and going into a new account/bank. Under $5,000. is one business day.

Part of the reason is that the bank at which the money is being withdrawn from, has several days after the transaction to cancel the transfer. This law is to protect the bank, not us obviously.

[Nutria]

Part of the reason is that the bank at which the money is being withdrawn from, has several days after the transaction to cancel the transfer. This law is to protect the bank

From fraud. By "us". Because we have the ability to cancel transactions after they've occurred. Remove that ability and transfers will happen much quicker.

That's because you can't have your cake and eat it too.

[sv2007]

From fraud. By "us". Because we have the ability to cancel transactions after they've occurred. Remove that ability and transfers will happen much quicker.

That's because you can't have your cake and eat it too.

How do you cancel a wire?

[thurgood]

the thing is, wire transfers are expensive.

(I could use the technical term: rip-offs)

[Nutria]

How do you cancel a wire?

I didn't write "wire", I wrote "transfer". As in "Electronic Funds Transfer", which isn't the same as a Bank Wire (even though both are electronic and transfer funds).

[TexasHusker]

the thing is, wire transfers are expensive.

(I could use the technical term: rip-offs)

Shop for another bank.